2014 Report on Social Responsibility
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2014 Report on Social Responsibility MACY’S | BLOOMINGDALE’S Updated October 2014
2 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
Letter from Terry J. Lundgren
At Macy’s, Inc. we pride ourselves on being part of a company that operates with integrity, makes
good choices and does the right thing in every aspect of our business.
This publication, our Report on Social responsibility. Rather, we must keep
Responsibility, outlines Macy’s, Inc.’s moving forward and innovating. That is
philosophies and illustrative actions on why we measure our progress in areas
a wide variety of subjects – including where data is available and tracking is
environmental sustainability, product viable. We report the data publicly so we
sourcing, consumer choice, community can challenge ourselves and document
support, diversity and inclusion, our progress.
employment and corporate governance.
Thank you for your interest in our company
In doing so, we seek to present a holistic and for your support in joining with Macy’s
picture of our role in society and how and Bloomingdale’s to make our local
we support the common good. This communities, our nation and our world a
publication is intended as an information better place to live and work.
resource for all of our stakeholders –
customers, associates, shareholders, and Sincerely,
community and government leaders.
Our company has accomplished much;
however, it is important to note that we Terry J. Lundgren
have plenty of opportunity to improve. Chairman and Chief Executive Officer,
There really is no finish line in social Macy’s, Inc.
About the Cover: Macy’s Heart of Haiti program includes decorative pieces by artisans struggling to
recover from the tragic earthquake of 2010. See Page 21.
3 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
Tangible
Progress in
Sustainability
4 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
Macy’s, Inc. remains steadfastly committed to
sustainability. We have made significant progress on all
fronts over the past several years and we continue to look
for new ways to minimize our environmental impact.
As a leading national retailer with a significant workforce,
we have the opportunity to make a meaningful difference
in improving the environment. And we do so by using
resources more efficiently and striving to reduce our
overall impact on the environment. We must, however,
operate within the bounds of good business decision-
making so that each action we take is measurable,
sustainable and enduring.
5 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
Macy’s 5-Point Action Plan
Macy’s, Inc.’s commitment to sustainability is multidimensional.
01 / We will be aggressive in our drive monthly customer billing statements. By 04 / We will take a comprehensive approach
to eliminate wasteful behavior. In some doing so, we will reduce the company’s to sustainability, involving everyone around
cases, this requires consistent application greenhouse gas footprint, energy us. Macy’s, Inc. will advocate sustainability
of very simple principles, such as reminding consumption and costs. and renewability with our vendor partners,
our associates to turn off lights when associates and customers. This will include
rooms are not in use, to print fewer hard 03 / Whenever possible and sensible developing supplier sustainability standards
copies of e-mails, to recycle waste, to within the context of our business and promoting eco-friendly products to our
optimize facility performance and to use requirements, Macy’s, Inc. will pursue the customers. We will encourage our associates
mass transit for commuting to work. In most environmentally-friendly solution. and ask them to support our initiatives with
other cases, we will be pursuing systematic We will be as aggressive as possible their ideas, energy, personal actions and
improvements to the way we do business, in changing for the better to preserve volunteer time. We will support efforts in
such as better targeting customer mailing endangered forests, wildlife, water quality our communities and our nation to clean
lists and shifting marketing to electronic and ecosystems. We will explore ways up the environment and reduce consumption
media so we are producing and sending to make our shopping bags, gift boxes, of scarce resources.
fewer printed advertisements. wrapping tissue, merchandise hangers and
other staples of retailing from recycled 05 / We will measure what we do and
02 / We will reduce our use of scarce and/or certified paper sources, with a strive toward quantifiable goals. Macy’s
resources in a meaningful way. Macy’s, preference for Forest Stewardship Council sets and periodically refreshes sustainability
Inc. will pursue ongoing programs to (FSC) certification. The building materials goals to guide our progress. Here is a
consume less electricity and water, reduce used in our stores will be environmentally- snapshot of our progress against goals in
our waste stream, and source more of our certified whenever reasonably possible. key areas of sustainability.
power from renewable resources such as
Waste Recycled
solar energy. We will use fewer paper-
related products, recycle more and seek
to use paper made with post-consumer 2012: 69,400 tons
waste. We will work to migrate more of our 2013: 79,840 tons
output from paper to electronic/digital, 2014 goal: 83,830 tons
including large-scale projects such as
6 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
Sustainability Goals
CATEGORY
Energy Consumption Renewable Energy Paper Consumption Use of Recycled/ Use of Sustainable
Sources (i.e., solar) Certified Paper Building Materials in
Major Construction
INITIAL GOAL SET IN SPRING 2008
Reduce total energy use on Increase our use of renewable Reduce the amount of paper Increase the percentage of third- N/A
a kilowatt-hour-per-square-foot power sources eight-fold by we use by at least 20 percent party certified and/or recycled
basis by another 10-15 percent 2010 from 2006 levels. by 2010 (from 2006 levels). (10 percent post-consumer
by 2010. waste or higher) paper we use in
marketing materials to at least
50 percent by 2010.
ENHANCED GOAL RE-SET IN 2013
Reduce total energy use on a By 2015, install an additional 25 By 2015, manage the amount Increase the percentage of third- Increase the use of sustainable
kilowatt-hour-per-square-foot percent to 35 percent of solar of paper products we use party certified and/or recycled building materials in all major
basis by another 6-10 percent power systems from 2012 levels. through internal operations (10 percent post-consumer construction projects by more
by 2015 (compared with 2012 so any growth is at least waste or higher) paper we use than 15 percent by 2015 (over
levels). 20 percent less than the in marketing materials to 95 2012 levels).
increase in the number of sales percent by 2015 from 63 percent
transactions in our stores and in 2009.
online.
CUMULATIVE IMPACT
At the end of 2013, total About 30,945 Megawatt At the end of 2013, total In 2013, 95 percent of all paper Sustainability is now built into
energy consumption on a Hours of renewable energy paper products used through used by Macy’s in marketing all Macy’s and Bloomingdale’s
kilowatt-hour-per-square-foot are generated annually on internal operations declined materials (such as direct mail) is store design, remodel and
basis has been reduced by 55 Macy’s facilities, and all but at over two times the rate of certified or recycled (10 percent construction projects. Use
35 percent over the past 3,700 Megawatt Hours are sold change in sales transactions, post-consumer waste or higher), of sustainable building
10 years. to others. despite a significant increase up from 59 percent in 2007. materials doubled in 2013
in preprinted newspaper About one-half of marketing from 2012 levels.
inserts (offset by a decrease in paper is Forest Stewardship
newspaper ROP advertising). Council-certified.
7 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
Sustainability In Action
01 03 04
LED Lighting Sustainable Apparel Electric Vehicle
Macy’s, Inc. has entered a Coalition Charging Stations
new phase of its industry- Macy’s Private Brands – Macy’s is collaborating with
leading program to install energy-saving the company’s product development Volta Industries to install 18 new free-to-
LED light bulbs in stores nationwide. organization – has joined the Sustainable operate electric vehicle (EV) charging
The company has already installed Apparel Coalition (SAC), a trade stations outside eight stores in the Los
more than 1 million LED bulbs in about organization working to reduce the Angeles area beginning in late fall 2014.
825 Macy’s and Bloomingdale’s environmental and social impacts of This installation will bring to 34 the
stores across America, cutting energy apparel and footwear products around the number of EV charging stations available
consumption used in lighting by up to world. SAC is comprised of brands, retailers, to customers at Macy’s store locations in
70 percent compared with conventional manufacturers, government, and non- southern California. In 2011, Macy’s became
bulbs replaced. In 2014, LED technology governmental organizations and academic the first major department store to pilot
is being extended to begin replacing experts, representing more than a third of the use of EV charging stations when it
fluorescent fixtures in store locations. the global apparel and footwear market. forged an agreement to install 16 charging
stations outside five Macy’s stores and
one Bloomingdale’s store in the San Diego
02
Solar Power
area, which are currently being operated
The company is planning
as part of the Blink Network. Collectively,
and developing 20 additional
these charging stations provide an
solar power arrays to be installed on the
added convenience to EV drivers and
roofs of stores and distribution centers in
help promote the reduction of fuel
California, Connecticut, Massachusetts,
consumption and the transition to clean,
New York and other states in 2014 and
renewable energy.
2015. At year-end 2013, solar energy was
being generated on 55 active installations
at Macy’s and Bloomingdale’s facilities.
About 30,945 Megawatt Hours of
renewable energy are generated annually
on 55 Macy’s facilities, and all but 3,700
Megawatt Hours are sold to others.
8 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
Paperless Billing Electronic Bill Pay
Percentage of Macy’s credit card bills Percentage of electronic payment of
that are sent to customers electronically Macy’s account bills
48.6%
41.0% 44.8%
34.0% 37.8%
15.5% 17.7%
9.5% 11.9%
8.2%
2009 2010 2011 2012 2013 2009 2010 2011 2012 2013
Sustainability In Action
05 06 07
Packaging Reduction Sustainable Shipping Digital Receipts
Macy’s is reducing waste Macy’s has transitioned Macy’s is driving adoption
100% in the merchandise supply cross-country shipments of digital receipts, which are
Macy’s shopping chain by standardizing the size of packing from over-the-road trucks to internodal available in all stores nationwide. When
bags are made cartons, incorporating recycled polyester rail containers, which contribute less than making a purchase, customers can choose
of 100 percent
fibers in many woven garment labels, 50 percent the amount of carbon dioxide to have a copy of their receipt e-mailed
recycled paper
with 50 percent
minimizing packaging materials and per freight mile than trucks. In the last four to them, thus eliminating the unnecessary
post-consumer adopting paper hangtags made from years, annual intermodal use increased use of paper receipts. Digital receipts
content and are FSC-certified paper. Work on packaging by 200 percent to 48 million miles and are a convenience for many customers
totally recyclable. reduction is being researched and piloted reduced carbon dioxide emission by more and support the company’s sustainability
in Macy’s Private Brands, with plans to than 98 million pounds. Merge centers objective of reducing the use of paper
collaborate with market merchandise have been introduced in our largest in its business operations. In 2013, about
vendors in the months ahead. vendor shipping markets – California, 6 percent of all store transactions were
New Jersey, North Carolina and Illinois. paperless.
Multiple vendors are combined on a single
truck to ensure full utilization of space
for trailers going to a Macy’s distribution
center. This has increased the number of
cartons per trailer by 50 percent which
means less carbon emitted.
9 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
Product
Sourcing
10 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
There is no shortage of talk about the obligation of
public companies to be socially responsible to the
people and communities where they do business.
At Macy’s, Inc., we hold those same beliefs — along
with a belief that actions speak louder than words
when it comes to helping tackle some of the toughest
problems facing us today.11 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
Vendor & Supplier Code of Conduct
Since 1995, Macy’s, Inc. has had a stringent Macy’s, Inc.’s policy on sweatshops Recognizing the risks of human trafficking
Vendor & Supplier Code of Conduct and forced or child labor, as well as the and slavery is a key objective of our human
that sets out specific standards and company’s Vendor & Supplier Code of trafficking and slavery training, with a
requirements for any supplier doing Conduct, is posted at macysinc.com/ focus on presenting real-world scenarios to
business with Macy’s, Inc. This includes vendorcodeofconduct. The Code also is help participants identify both the obvious
private brand goods produced through available by calling 1-800-261-5385. and more subtle indicators of trafficking or
contracted vendors. The Code of Conduct forced labor. This focus of the online short
is designed to protect workers in this course is to:
Human Trafficking and Slavery
country and abroad. All of the company’s • Increase awareness of human trafficking
Macy’s, Inc. does not tolerate the
suppliers are required to agree in writing and slavery in supply chains
involvement of its suppliers in human
to comply with the company’s Code of • Identify human trafficking and slavery
trafficking and slavery. We will quickly
Conduct. Among other things, the Code risks in company supply chains
investigate any reports alleging human
requires that suppliers of Macy’s private
trafficking and slavery in the supply • Support prevention and mitigation
brand merchandise allow unannounced
chain, and will take swift and decisive efforts when human trafficking and
factory audits (within a 14-day audit
action against any supplier that is found slavery is suspected.
window) for contractual compliance,
to act improperly in this regard. We have Each year our executives receive General
as well as for compliance with laws and
enhanced our Vendor & Supplier Code Legal Compliance training or Code of
regulations dealing with child or forced
of Conduct and our audit tool used for Conduct training, both of which contain
labor, wages and hours, and unsafe
factory audits to emphasize our policies information on slavery and human
working conditions. Willful noncompliance
on human trafficking and slavery. trafficking. Over the past four years, more
with the Code has resulted in termination
than 25,000 Macy’s, Inc. employees have
of 77 suppliers in the 2011-2013 period.
received this training each year.12 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
Factory Audits
Macy’s, Inc. requires various types of Conduct and Security audit. Landed Duty 4. Homeworkers
audits at factories worldwide that are Paid (LDP) suppliers – typically U.S.-based 5. Fraudulent record keeping
contracted to produce goods we design, companies that source overseas or in the
6. Unauthorized subcontracting
market and sell as part of the Macy’s Private U.S. – undergo a Code of Conduct audit.
Brands program. 7. A confirmed violation of the Foreign
In every case, suppliers must meet or exceed Corrupt Practices Act (for companies
The audits are conducted by UL Verification Macy’s minimum standards before being subject to U.S. laws) will result in
Services, an independent third party that has approved for production and set up in our immediate deletion from Macy’s of
been a member of the UN Global Compact system for merchandise orders. both factory and supplier.
since 2003. UL Verification Services brings
in-depth experience in verifying employment If problems are identified, the factory When a High Risk violation is found at any
practices, including age and wage in may be provided an opportunity to make factory, the situation is elevated internally at
accordance with local labor laws; factory corrections. In those cases, we then repeat Macy’s for a decision that may include some
health and safety; and living facilities. the audits to verify that any issues have been type of remediation or removal of the factory
Audits also include private interviews with resolved. as a supplier.
workers in various departments to confirm
factory policies. Macy’s, Inc. also conducts security audits of
Ongoing Audits
its overseas factories in cooperation with
In addition to initial audits, all factories are
Through quality assurance social compliance U.S. Customs and Border Protection, an
subject to audits every 12 to 18 months. They
inspections and audits, Macy’s holds its agency of the Department of Homeland
are conducted within a 14-day audit window
suppliers accountable that the merchandise Security, as part of the Customs-Trade
and are conducted more frequently at
produced is manufactured in compliance Partnership Against Terrorism (C-TPAT)
factories where violations have been noted
with the Vendor & Supplier Code of Conduct, program. Macy’s has been part of C-TPAT
in the past. We maintain our own standards
as well as consistent with local laws and since the program was initiated in 2002.
for compliance, which are among the highest
regulations. The goal of these audits is to further improve
in the U.S. retailing industry.
security measures at our production sites
and throughout the supply chain.
Initial Audits of New Vendors We have identified the following violations
Before conducting business with a new as High Risk:
factory, our independent third-party monitor
1. Child or forced labor, restricted freedom
performs thorough audits as a normal course
of movement, slavery or human trafficking
of assigning business. Free On Board (FOB)
2. Physical abuse
suppliers – those with whom we directly
contract – undergo a combined Code of 3. Attempted bribery or kickback13 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
Supplier Factory Audit Results for 2013
In fiscal 2013 (the year ended Feb. 1, 2014), the company conducted 1,280 factory audits:
The 1,280 factory audits in 2013 compares to 1,433 in 2012 and 1,533 in 2011.
Free on Board (FOB) supplier total number of audits – 640
Landed Duty Paid (LDP) supplier total number of audits – 640
2013 factory inspections by region of the world.
East Asia ......................................................................... 743
South/Southeast Asia and Oceania ..................... 398
North/Central/South America ............................... 99
Europe ............................................................................. 25
Middle East/Africa....................................................... 1514 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
+ +
During 2013, audits showed a total of 23 factories fell under the category High Risk, which is considered a failure.
Of the 23 factories with a High-Risk Of the 70 factories with a High-Risk audit
audit in 2013: in 2011 and 2012 combined:
20 factories were terminated and 57 factories were terminated and are
are no longer used for production, or no longer used for production, or were
were eliminated from consideration eliminated from consideration prior to
prior to orders being placed. orders being placed.
3 factories were allowed to remain 13 factories were allowed to remain
active for production, pending active for production, pending specific
specific corrective action to improve corrective action to improve conditions,
conditions, followed by follow-up followed by follow-up audits and/or
audits and/or specialized training. specialized training.
Training
All Macy’s offices (and our senior needed, we encourage factories requiring reiterate what is required based on our
management) are actively engaged with remedial support and/or special guidance Vendor & Supplier Code of Conduct and
FOB and LDP suppliers and factories on to arrange their own independent audit discuss changes to the program, as well as
our Vendor & Supplier Code of Conduct through a reputable social compliance developments and future directions in the
efforts and audit program. The overseas monitoring firm. We also encourage all our social compliance arena.
merchandising team in each office is active suppliers to establish their own
responsible for providing orientation and independent in-house social compliance Internally at Macy’s, we have begun to
training to any new FOB suppliers and function to regularly monitor their compli- train new hires from the various merchant
factories and the social compliance team ance across their span of operations. areas to provide an introduction to
in New York is responsible for providing social compliance: the challenges, what
orientation and training to any new LDP is expected from the product areas and
Periodically, we train the LDP suppliers in
suppliers and factories. New factories are what is required to set up a supplier and
New York on the audit/approval process by
encouraged to carry out a self-audit prior factories.
reviewing all requirements and expectations
to a third-party audit being done. When specific to private brand suppliers. We15 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
Alliance for Bangladesh Worker Safety Finance: • Conducted follow-up limited sample
In 2013, Macy’s was a founding member of • Successfully advocated to the survey with 683 randomly selected
the Alliance for Bangladesh Worker Safety, workers to assess progress in worker
government to eliminate tariffs on key
which was formed to protect and empower awareness
safety equipment, making critical items
workers, and elevate fire and building safety
significantly more affordable • Established an Alliance Worker Helpline,
in Bangladeshi garment factories through
• Doubled the duration of compensation Amader Kotha, which will be piloted in
comprehensive and measurable actions.
provided to displaced workers from two 50 factories
The Alliance made significant progress to four months • Appointed three prominent Bangladeshi
in its first year. Among the Alliance’s labor leaders to our Board of Advisors
• Disbursed wages to approximately
accomplishments in that initial period were
1,000 workers displaced by factory • Created a Board committee dedicated
the following:
remediation to date exclusively to labor issues comprised of
Inspections: Training: seven trade union leaders
• Developed and implemented the • Developed the Alliance Basic Fire Safety • Invited worker representatives to be
country’s first harmonized Fire Safety Training module part of the factory inspection process
and Structural Integrity Standard and shadow assessments
• Trained more than 1 million workers and
• Identified and hired seven professional managers in basic fire safety • Amended the Alliance Members
local companies to serve as Qualified Agreement to include a worker’s right to
• Hosted the country’s first-ever
Assessment Firms to conduct refuse unsafe work
International Trade Expo for Building
independent inspections and Fire Safety in Dhaka with nearly For more information, visit
bangladeshworkersafety.org.
• Inspected 100 percent of its 587 3,000 vendors, factory owners and
factories safety experts to increase access
• Began rolling publication of all to affordable high-quality safety
inspection reports and Corrective Action equipment and expertise
Plans to Alliance website
• Recommended to the National Tripartite Worker Empowerment:
Committee Review Panel to close or • Conducted the largest worker survey
partially close 10 unsafe factories, none ever administered in Bangladesh with
of which produced goods for Macy’s more than 3,200 workers
Private Brands16 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
Macy’s, Inc. Conflict Minerals Policy
This section contains Macy’s, Inc.’s to help finance armed groups that are market participants. Macy’s therefore
policy regarding the use of conflict committing human rights abuses in the requires the cooperation of its private
minerals in its private label products. Democratic Republic of the Congo and its label suppliers in the implementation and
As used in this policy, “Macy’s” includes adjoining countries. The Conflict Minerals execution of its processes to comply with
Macy’s and Bloomingdale’s and their Rule is intended to reduce a significant the rule.
respective subsidiaries, including Macy’s source of funding for these groups.
Merchandising Group. Macy’s expects its suppliers to seek
Macy’s takes seriously its obligations minerals from sources that do not directly
The Securities and Exchange Commission under Section 1502 of the Dodd-Frank or indirectly contribute to the conflict in
adopted a conflict minerals rule (the Wall Street Reform and Consumer the covered countries. Macy’s reserves
“Conflict Minerals Rule”) as mandated Protection Act regarding conflict minerals. the right to request from any supplier at
by Section 1502 of the Dodd-Frank Wall Macy’s is committed to ensuring that any time such information, certifications,
Street Reform and Consumer Protection the metals and other minerals contained and documentation as it shall deem
Act. “Conflict minerals” are defined in in the private brand products it sells necessary to monitor or assess compliance
the Conflict Minerals Rule as cassiterite, are obtained, produced, and used in a with this policy.
columbite-tantalite (coltan), gold, socially responsible manner. Macy’s does
wolframite and three specified derivatives: not directly source conflict minerals from Macy’s seeks to work with suppliers who
tin, tantalum, and tungsten. The mining mines, smelters or refiners, and is in most will share its commitment in working
and trade of the minerals is believed cases several levels removed from these toward compliance with this policy.17 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
Consumer
Choice18 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
In a free society as eclectic and ethnically varied as ours,
customers expect and demand a range of choices that meet
their individual needs and fashion preferences. In our role as
retailers, we recognize that it is the consumer who ultimately
determines what products will continue to be viable retail
offerings. Those decisions are made daily at point of sale by
individual consumers and function as a singularly effective
barometer for determining what will and will not be sold
by retailers in a free and open marketplace. Varied and
conflicting viewpoints about what should or should not
be sold underscore our belief that factors unrelated to the
workings of a free economy are inappropriate determinants
of retail offerings.19 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
Consumer Choice
Position on Fur retailers will not sell it. Right now, this is not Position on Uzbekistan Cotton
While we respect the views of individuals the case. We understand that customers Uzbekistan has a long history of using
who choose not to buy or wear fur, we also want to make their own decisions and we children to harvest cotton in spite of
respect the wishes of many others who are respect their right to do so. At the same international demand to change this
our customers and who want to make such time, all of our stores offer a wide range of practice. Macy’s has long had a policy
choices for themselves. other selections across many merchandise against child labor and has been vocal
categories. This includes fashions made with suppliers in requesting that cotton
Labeling: Macy’s requires all its vendors to
with faux fur and many other materials, from Uzbekistan not be sourced. Macy’s
comply with all labeling laws. In the case
including organic cotton, for example. and other retailers have been united
of labeling fur and fur-trimmed products,
Consumers have the ability to choose what in demanding that Uzbekistan not use
our vendors are required to meet the
they prefer. children or forced labor in the harvesting
requirements of the Fur Products Labeling
process. The National Retail Federation
Act. Whenever a question arises about the
Position on Merino Wool and Mulesing continues to represent U.S. retailing in the
accuracy of labeling, we will investigate and
In Australia, it has been common practice battle to protect children from forced labor
take appropriate action, if warranted.
to surgically remove, without a pain reliever, in Uzbekistan. We also have collaborated
Selling: Our department stores try to be strips of wool-bearing skin around the with the Responsible Sourcing Network
responsive to customer expectations, breech of sheep to prevent flystrike. Macy’s, in contacting textile mills about our
particularly in this highly competitive through the National Retail Federation, has opposition to Uzbekistan cotton in goods
environment. Fashion, value and service been an active proponent of alternatives made for sale at Macy’s. Our company was
are the principles on which our stores are to mulesing. As a result of the efforts of a participant in the Cotton Sourcing Survey
focused. The consumer will ultimately retailers and others, the Australian merino of Corporate Practices to End Forced Labor.
determine whether fur will continue to wool industry has made strides in this
be a viable product in the American retail regard. Macy’s supports efforts for further
marketplace; if no one wants to buy fur, improvement in this area.20 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
Socially
Responsible
Products at
Macy’s21 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
Socially Responsible Products at Macy’s
Several exclusive merchandising initiatives at Macy’s involve products with a focus on
international social responsibility. Here are three examples.
01 02 03
Macy’s Path to Peace Macy’s Heart of Haiti GoodWeave™ Rugs
Macy’s Path to Peace Macy’s Heart of Haiti In spring 2011, Macy’s
program includes colorful and program includes decorative introduced a collection
symbolic baskets and bowls handmade by pieces (such as textiles, metalwork and of decorative area rugs that have been
Rwandan female weavers who survived housewares) made by artisans struggling certified by GoodWeave™, an international
the country’s civil war and genocide. The to recover from the tragic earthquake organization that works to ensure rugs
products are available on macys.com of 2010. The products are available on made by hand in Nepal and India are
and in selected Macy’s stores. Introduced macys.com and in selected Macy’s stores. free of child labor. The collection is
in 2005, Path to Peace has dramatically Purchasing one of these handcrafted carried in Macy’s stores nationwide and
changed the lives of many Rwandans. masterpieces directly benefits Haitian on macys.com. By buying a beautiful hand-
From public health initiatives and HIV/ artisans by allowing them to support their crafted rug at Macy’s with the GoodWeave
AIDS care to the spirit of hope and families with dignity and purpose. With label, shoppers are helping to support
reconciliation fostered by the weavers, steady income comes better nutrition, families and build sustainable communities
the tangible and intangible impact improved education and access to in Nepal and India, nations where poverty is
of the project is no longer measured healthcare. Heart of Haiti also offers new widespread. GoodWeave-certified rugs are
by individual weavers but by whole opportunities for artists to collaborate woven by skilled adult artisans, permitting
communities. More information is with U.S. designers, strengthening artisan educational opportunities for children
available at macys.com/rwanda. associations and inspiring and energizing who otherwise might be required to work.
their communities. More information is Macy’s continues to work with GoodWeave
available at macys.com/haiti. to expand the availability of certified rugs in
the United States. More information about
GoodWeave is available at goodweave.org.22 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
Community
Support23 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
Macy’s, Inc. supports thousands of nonprofit
organizations annually because we believe giving
back is the right thing to do. It’s a long-standing
tradition and a source of pride for the company.
Collectively, contributions in 2013 from the company
and the Macy’s Foundation — as well as employee
contributions through workplace giving campaigns
and customer contributions through our signature
giving programs — totaled more than $73 million. In
addition, our associates gave more than 134,000 hours
of their personal time for community service.24 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
Corporate and Foundation Giving
Through our gifts from Macy’s, Bloomingdale’s and the Macy’s Foundation, more than $26 million
was contributed to approximately 6,000 nonprofit organizations in 2013. The majority of our gifts
were directed to our core focus areas for funding: arts and culture, education, the environment,
HIV/AIDS awareness and research, and women’s issues.
Our signature giving program, My Macy’s in-store letterboxes, up to a maximum programs, housing programs, and
District Grants, completed its fourth of $1 million, and added contributions of research and counseling initiatives.
6,000 year of operation in 2013 and provided more than $1 million for letters posted on
The total number of nearly 1,300 grants in our local commu- National Believe Day and from other in- We contributed to environmental
worthwhile charities nities. The District Grants program features store events. programs covering both conservation and
supported nationwide
contributions committees in each of the preservation, including sponsorship of
by Macy’s, Inc. and the
Macy’s Foundation Macy’s operating districts who make Across the country, support from Earth Day activities, plant programs for
local funding decisions. Similar to our Macy’s (“The Magic of Giving”) and children at botanical gardens, and animal
merchandise localization, the District Bloomingdale’s contributions programs preservation and awareness programs
Grants program aids our local teams in helped sponsor free admission to at zoos and aquariums. In the women’s
supporting the organizations and causes museums and exhibits, special musical issues focus area, our grants supported
that are important in their respective performances, art exhibits, and art and early detection and screening programs
local communities. theatre workshops for children. In the for heart disease, breast cancer and
area of education, we funded scholarship ovarian cancer; provided a wide range
A major gift in 2013 was a grant of more programs, summer reading programs, of assistance to emergency shelters;
than $2 million to Make-A-Wish as part of mentoring and tutoring, and early sponsored programs to raise awareness
our sixth annual Believe campaign during childhood education initiatives. Grants about domestic and dating violence;
the holidays. Macy’s donated $1 for every in our HIV/AIDS focus area included and funded self-esteem and leadership
letter to Santa dropped into our special sponsorship of awareness walks and runs, programs for young girls and teens.
as well as funding for meals and nutrition25 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
Cause Marketing
Because Macy’s, Inc. believes in helping to create stronger, more vibrant communities, we invited
our customers throughout the year to join us in making a difference and “giving back.” In 2013,
customers contributed more than $33 million to nonprofit organizations nationwide through our
signature programs.
Go Red For Women Shop For A Cause Macy’s Passport Presents
$33 million
2013 marked Macy’s 10th
year as national sponsor
Shop For A Cause is our annual
charity shopping day event held
Glamorama
Over the past 31 years,
Contribution made of Go Red For Women, the in every Macy’s store across the the Macy’s Passport Presents Glamorama
by Macy’s, Inc.
American Heart Association’s campaign country, benefitting more than fashion extravaganza has raised millions
customers in
2013 to nonprofit
for awareness and prevention of heart 6,000 local charities. In 2013, Macy’s also of dollars for charities that help fight
organizations disease in women. In 2013, approximately raised $2.9 million for the March of Dimes childhood illness, cancer and HIV/AIDS.
$6.2 million was contributed to the Go which was the recipient of in-store Shop In 2013 the events combined fun, fashion
Red movement through our Wear Red For A Cause tickets. and philanthropy in four cities to raise
Day promotion and from our Thanks more than $700,000.
For Sharing holiday rewards program.
Thanks For Sharing
Thanks For Sharing is Got Your Six
Macy’s holiday rewards In 2013, Macy’s new summer
Reading Is Fundamental program. In 2013 for the fifth consecutive American Icons marketing
Customers supported Reading year, $15 million was raised for charitable campaign included a
Is Fundamental (RIF) with organizations across the country. By partnership with Got Your Six. The inaugural
donations totaling nearly enrolling in the rewards program during cause-related program raised more than
$4 million in 2013 through our Be Book the holiday season, customers contribute $3.4 million for Got Your Six and its mission
Smart back-to-school effort and other to designated nonprofit organizations to honor and empower American veterans
campaigns. located in communities across the country. through top veteran-focused nonprofit
organizations.26 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
Associate Giving
Associates of Macy’s and Bloomingdale’s are tremendously generous with their support of
nonprofit organizations – with both monetary contributions and gifts of their time and leadership.
They make our “give back” value come alive every day.
Bag Hunger
Macy’s, Inc. associates
Macy’s Foundation Matching Gifts Earning For Learning contributed food and donations
In 2013, the Macy’s Foundation contributed Earning For Learning (EFL) is an initiative equivalent to $3 million in
more than $4 million to charities across that provides grants to elementary and 2013 to our companywide Bag
the country as a dollar-for-dollar match secondary schools where Macy’s, Inc. Hunger food campaign to help reduce
of our associates’ personal charitable associates, their families or retirees hunger in our local communities.
contributions to approximately 3,000 volunteer their time for education
individual nonprofit organizations activities such as tutoring and mentoring.
In 2013, Macy’s awarded approximately 60 JDRF
throughout the country.
grants totaling $23,500 through the EFL Bloomingdale’s donated more than
program, and EFL volunteers gave 3,200 $700,000 to the Juvenile Diabetes
United Way hours of service to their local schools. Research Foundation in 2013 through
About 700 United Way its annual internal campaign.
chapters across the United States
received pledges totaling about
$10.7 million from Macy’s, Inc. associates
during the 2014 campaign. Combined with
nearly $3 million in contributions from
Macy’s, Inc., our United Way campaign
total will be about $13.7 million in 2014.27 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
Volunteerism
Since the Macy’s, Inc. Partners in Time employee volunteer program was founded in 1989 (25 years
ago), thousands of volunteers have given more than 2 million hours of community service. That’s
valued at more than $38 million to thousands of charities we’ve impacted through the years.
Along the way, our Partners in Time Projects for health issues, including Scores of Macy’s and Bloomingdale’s
program earned national recognition, disabilities and AIDS, were supported associates serve on the boards of nonprofit
receiving the Points of Light/Hands by 7 percent of projects, and 6 percent groups, providing leadership, expertise,
On Network “Award for Excellence in supported breast cancer research, family and technical and management guidance.
Workplace Volunteerism,” among other violence awareness and other issues of
honors. In 2013, more than 35,400 special interest to women.
participants conducted 3,308 Partners
in Time service projects. Thousands
of others were involved in “give back”
initiatives such as cause marketing and 2013 Partners in Time Employee Volunteer Projects by Issue Area:
employee giving campaigns.
+762H
Partners in Time and Earning For Learning
volunteers gave more than 134,000 hours
of service in 2013 alone. Partners in Time
projects made a strong impact for youth
with 18 percent of efforts benefitting
children and school partnerships. With
the success of our Partners in Time Bag
Hunger food campaign, hunger relief
represented 45 percent of volunteerism.
45% Hunger
18% Children/School Partnerships
11%
7%
6%
2%
11%
Health (including disabilities and HIV/AIDS)
Environment/Housing/Disaster Relief
Women’s issues
Arts/Civic/Culture/Holiday
Other*
*Projects for diversity initiatives and others.28 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
Stories of Giving
01 03
Macy’s 2nd Mondays never get that opportunity. Through our Midsummer Night Swing
On the second Monday of each District Grants program, Macy’s served Macy’s was the presenting
month, toddlers aged five and as presenting sponsor for this year’s sponsor in 2013 of
under – along with their parents – received fourth annual spring affair. The grant Midsummer’s Night Swing held at Lincoln
free admission to The Henry Ford Museum funded room decorations and other Center in New York City. Midsummer
in Dearborn, MI. The youngsters enjoy party elements to produce an evening so Night Swing is a dance party under the
programs and activities designed especially magical the children could forget their stars held for 16 evenings in June and
for the preschool set in Henry Ford Museum hospital challenges for this one precious July at Lincoln Center’s Damrosch Park,
and adjacent Greenfield Village. This night. Macy’s associates created a Macy’s giving participants a chance to sample
program is a way for moms to help their Dress Shop where our fashion consultant salsa, disco, classic swing and more –
toddlers seed a deep appreciation for and volunteers guided the young people in all set to live music. Midsummer Night
continued interest in American history as choosing and donning clothing items Swing draws over 80,000 attendees,
they grow. There are more than 15,000 they could keep: a dress/suit, shoes and attracting dancers of every age, ethnic,
participants in the Macy’s 2nd Monday accessories – while our cosmetics crew and economic group. Macy’s has been the
program annually. Macy’s has sponsored elevated the experience by providing lead sponsor of Midsummer Night Swing
the program since 2005. make-up and make-overs. Feeling like since 2011.
princes and princesses, the young people
danced the night away with their parents
02
Prom Night at St. Joseph’s
and siblings, enjoying the food and disco-
Tampa’s St. Joseph Children’s
ball atmosphere, as well as reveling in
Hospital’s annual prom event
the delight of “normalcy”… no beeping
serves pediatric patients who are unable
monitors, IV poles or chemo ports. Well
to attend their own prom due to life-
placed Macy’s Magic!
limiting illness and who will most likely29 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
Stories of Giving
04 05
Saying NO MORE to Helping to Find a Cure for and fashion apparel and cosmetics
Domestic Violence Breast Cancer professionals collaborate – with the help of
Macy’s was one of the Macy’s associates in the Macy’s associates – to make the morning
initial U.S. companies to support the new Philadelphia District believe the best a truly memorable experience. Macy’s
NO MORE awareness campaign calling Mother’s Day gift they can give is their provides all breast cancer survivors of all
attention to domestic violence and sexual support of and participation in the annual ages who participate in the race with a
abuse. The campaign launched in fall Susan G. Komen Philadelphia Race for the congratulatory gift each year.
2013 and was created by the Joyful Cure, which is held every Mother’s Day
Heart Foundation and its founder, actress beginning at the base of the Philadelphia Macy’s is also proud to be a sponsor
Mariska Hargitay. The campaign has two Art Museum steps (the famous “Rocky” at the annual Komen Pink Tie Gala in
important goals – increasing awareness steps). Macy’s has been a Gold Sponsor of Philadelphia each fall and is the presenting
of domestic violence and sexual assault the Philadelphia Race for the Cure since sponsor of the Fall Empowerment Series,
in every corner of our society and starting 2006 and approximately 500 Partners designed specifically for young breast
to address the silence and inaction in Time volunteers either walk/run the cancer survivors.
surrounding this critical issue. course or volunteer at the Macy’s Big
Pink Footprint Young Survivor’s tent. This
The campaign is incorporating the call- exclusive area celebrates the courage of
to-action of NO MORE, and its powerful breast cancer survivors between the ages
new symbol is the first overarching visual of 20 and 40. Educational interactive
symbol to address support for ending stations, guest speakers in the field of
domestic violence and sexual assault. oncology, vitamin and nutrition experts,30 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
Diversity & Inclusion31 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
Diversity and inclusion are at the core of Macy’s, Inc.’s
approach to doing business. It touches all areas
of our company. We expect our associates, our
advertising and in-store presentations, and the
companies with which we do business to mirror the
diverse multicultural marketplace we serve.32 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
Diversity and Inclusion
Our Associates Our Suppliers Community Partnerships
Macy’s believes that different perspectives Having a supplier base that reflects our Our commitment to the communities where
34% are important to our company, and we benefit diverse customer base gives us a tremen- we live and work is a key component of
The percentage of greatly from the individual strengths of each dous competitive advantage, particularly our holistic diversity plan. Our mission is
our companywide associate. To serve our diverse customers, because it enables us to source distinctive to develop solid, meaningful relationships
management team we have to be a diverse company. Women merchandise to present in our stores. It with our communities, working with
comprised of represent more than 75 percent of the also helps us give meaningful support to community leaders, elected officials and local
racial minorities. workforce across Macy’s, Inc., and more than businesses that contribute to the economic organizations to understand the wants and
65 percent of management-level executives health of our local communities. Our Supplier needs of each community and to develop
are women. Racial minorities represent nearly Diversity Program helps us identify and initiatives that have a positive impact on
54 percent of our associate team and nearly support emerging minority- and women- the lives of residents. By understanding
34 percent of our management team. owned businesses. In 2013, our company’s and respecting the rich diversity of each
purchases from minority- and women- community and our customers who reside
Our Marketing and Advertising owned business enterprises totaled about there, we learn how to serve and appreciate
A crucial part of our diversity strategy is our $955 million. The Workshop at Macy’s, its uniqueness. Macy’s, Inc. demonstrates
multicultural marketing. We use powerful our company’s first business development its commitment through charitable
and evocative images, symbols and words program, was launched in 2011 to foster contributions, leadership, board service,
to communicate our brand messages, growth in the next generation of minority- employment initiatives, volunteerism, and
our special events and our merchandise and women-owned merchandise suppliers the creation of economic partnerships.
selections to our diverse core customers. (see page 33). For example, Macy’s, Inc. representatives
And we deliver those messages via targeted serve as local Urban League board members
media channels to reach customers where Macy’s is an active board-level member of in New York City, Cincinnati, Houston,
and when they want to receive our messages. the National Minority Supplier Development Atlanta, Los Angeles and Washington, D.C.,
We also work with minority-owned and Council and the Women’s Business as well as on the boards of organizations
women-owned agencies to ensure our Enterprise National Council (WBENC). The such as United Way, American Red Cross,
concept development and ad placements company was named as one of America’s educational institutions and museums.
are in sync with our multicultural customer. Top Corporations for Women’s Business
Enterprise by WBENC in 2012.33 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
Diversity and Inclusion in Action
01
The Workshop at Macy’s The goal of this annual program is to help current and past participants as they
create a pipeline of viable enterprises that progress through the opportunities
71 The Workshop at Macy’s is a
week-long intensive training will grow to become successful partners outlined during the program for potential
Minority- and women- course developed by a consortium within Macy’s own vendor community. First graduation to Macy’s vendor status.
owned businesses
of experts from Macy’s Learning & held in the spring of 2011, the Workshop
included in the first
Development; Macy’s Multicultural enrolled 71 businesses in its first four To date, nine graduates from The
four classes of The
Workshop in 2011, Merchandising and Vendor Development; years that ranged from makeup/skincare Workshop were selected to sell products
2012, 2013 and 2014. and Babson College, the nation’s leading companies to confectioneries, home at select Macy’s locations and/or on
business school for entrepreneurship; textiles and ready-to-wear designers. macys.com.
along with select Macy’s merchants and The Workshop team follows up with
vendors. The specially-designed business
development curriculum is aimed at
minority- and women-owned retail
businesses that are poised to succeed on a
larger scale, but need real-world business
practice information and perspective on
large-scale vendor relationships to move
to the next level and sustain growth.
The Workshop at Macy’s allows selected
participants to collaborate with fellow
aspiring vendors, gain access to industry
experts and solicit one-on-one business
coaching. The course work includes
classes on merchandising and assortment
planning, marketing, Electronic Data
Interchange (EDI), financial management
and access to capital.34 Sustainability Sourcing Consumer Choice Socially Responsible Products Community Support Diversity & Inclusion Employment Corporate Governance
Diversity and Inclusion in Action
02
Celebrating Chinese Forty Carrots yogurt; a limited-edition product assortments to enhance the gift-
New Year Year of the Horse tote bag; special offers giving opportunities for customers in local
Bloomingdale’s and Macy’s at the Clarins, Estée Lauder, and La Prairie markets.
each celebrated Chinese New Year in 2014 counters; savings at select Bloomingdale’s
with spectacular celebrations. dining destinations; complimentary mini As part of Macy’s ongoing My Macy’s
cupcakes at Magnolia Bakery (59th Street initiative to provide locally-relevant
Bloomingdale’s rang in the Year of location); special savings at Maximilian Fur products to customers in each location,
the Horse with unique pop-up shops, Salon (59th Street, North Michigan Avenue, 50 local market stores across the nation
merchandise, special events and cultural South Coast Plaza). joined the festivities by offering an
presentations. increased selection of Lunar New Year-
Bloomingdale’s also debuted limited- themed product. Macy’s also helped
Shoppers at Bloomingdale’s 59th Street edition pop-up shops curated by the sponsor two of the nation’s largest Lunar
in New York, North Michigan Avenue in retailer’s fashion office that were filled New Year events including the 2014 Lunar
Chicago, San Francisco Centre in San with unique wardrobe and home items for New Year Chinatown Parade and Festival
Francisco and South Coast Plaza in Costa celebrating Chinese culture. in New York on Feb. 4 and San Francisco’s
Mesa were invited to get into the spirit Chinese New Year Festival and Parade on
of the holiday and test their luck with the Meanwhile, Macy’s hosted a series of Feb. 15.
Chinese red envelope tradition. Select special showcase events featuring fashion
envelopes were filled with prizes such as a shows, cultural dance performances,
bMoney card in a denomination of $8, $88, cooking demonstrations and special
or $888 (a traditional lucky number in the activities for children. In addition, selected
Chinese culture); a complimentary small Macy’s stores offered specially curatedYou can also read
